Pension Sharing Order and Drawdown Pension

Phoenix9999

Hi,
Ive been awarded half of my husbands Defined Contribution pension but have to take it out of his scheme and buy a new pension for myself with it. As it’s a healthy amount I have to take financial advice.  I already know that I want a drawdown pension and have spoken to a few companies about this.  Two companies have suggested a 2.3% and 2.6% for setting this up.  An annual management fee of 0.8% and then on top there will be the platform annual fee, plus fund manager’s fees.  Does it stop there I wonder.  My question though if anyone can help, do these annual fees sound about right or are they exorbitant?  
It’s such a minefield when I go onto unbiased or vouched for.  They put you in touch with IFA’s who I’m sure are wealth managers who are used to dealing with millionaires and are attached to big companies like St. James Place or MyPensionExpert.  Any advice would be very welcome.

debitcardmayhem

I have asked the admins to move this to a pension related forum/board

MSE_ForumTeam5

Moved as requested

Phoenix9999

Apologies, I stated that my husbands pension is defined contribution but I meant to say defined benefit.  It was a final salary scheme and my husband and I are already retired and taking our pensions.

JoeCrystal

Could you not keep it with the original pension scheme?

Scot_39

This has come in on energy forum.

It would perhaps be best placed in say

https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

You can use the report button to ask an admin to move it.  Or simply post again there and close this thread.

dunstonh

 Two companies have suggested a 2.3% and 2.6% for setting this up.  An annual management fee of 0.8% and then on top there will be the platform annual fee, plus fund manager’s fees.  Does it stop there I wonder.  My question though if anyone can help, do these annual fees sound about right or are they exorbitant?  

WIthout knowing the transfer value, it is difficult to have context.  2.3% or 2.6% on £100k is not a lot.     But on £500k it is far too much.

Some with any ongoing adviser charge 0.8% on a value below £100k is actually very cheap.   On a value over £500k is expensive.

It’s such a minefield when I go onto unbiased or vouched for.  They put you in touch with IFA’s who I’m sure are wealth managers who are used to dealing with millionaires and are attached to big companies like St. James Place or MyPensionExpert.  Any advice would be very welcome.

Don't use unbiased or vouchedfor.    Unbiased has priced most IFAs out of using it and now its mostly FAs that are on there or IFAs that operate a salesforce model.  Vouchedfor is damnded expensive for advisers to use and those costs will be recouped in the charges you pay.     An adviser I know that is on vouchedfor has a different charging tier for those that approach him via vouched for.

IFAs do generally deal with people with higher net worth.   However, they are not attached to companies like SJP or Mypensionexpert.   The I in IFA is independent.    Those companies are FAs.  Not IFAs.  Unbiased is not an IFA directory any more.  Its effectively a lead generation site for regional and national salesforce FAs with only a small number of IFAs left on there.

Most IFAs are small localised firms of 1-5 advisers and have very little internet coverage and won't waste their resources on paying for lead generation sites that are more interested in promoting the salesforces.

LHW99

If you look on google.co.uk (not.com), there is a "tools" button at the top, that allows you to select for UK only. Then search using a term like "independent financial adviser" "your location" (whatever your location is) and some will come up.

Then have a check on the FCA register to make sure they really are registered and independent https://register.fca.org.uk/s/

That should give you a few names to phone and see if you want to ask for an introductory discussion to find out if you can work together.

Phoenix9999

Thank you for the comments.  My husbands pension has a CET aule of £500,011 and I have been awarded 47% of that, so quite a good sum.  I thought that 2.3% for advice and the admin of actually transferring the pension is a bit hefty but wanted to know if it was normal or not.  

I have been told that a I cant leave the pension with Mercer, the fina salary scheme administrator.  I guess it’s not in their interests if they can make me take it elsewhere.  In any case, now that I’m 72 and have cash money to use for the next five years, I would rather put it in a drawdown and hopefully leave it untouched to grow a bit more.

on that point, is Aviva a good platform for me to take a cautious to middle pathway with? All three IFAs that I have spoken to mention them as their preferred platform.  

Thank you so much for all the helpful advice.
Best Lynda

dunstonh

 is Aviva a good platform for me to take a cautious to middle pathway with? All three IFAs that I have spoken to mention them as their preferred platform.  

Aviva is probably the most basic of the FNZ platforms.  It has a number of quirks.    IFAs generally do not use pathways as they tend to be poor value compared to whole of market options.   

Aviva have thrown around some discounts to firms that use them heavily enough but their default terms are expensive.  I used to have discounted terms on them but as I found their software low quality I stopped using them and they took the discount away.

xylophone

Had you tried here?

https://adviserbook.co.uk/

Tick "confirmed independent" and other options required when the menu comes up.

Yours is not strictly a pension transfer as defined here https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

  but nevertheless it might be worth ticking the  "pension transfer" box  as a firm with such permissions might have more expertise in the general area.